Eli Lilly & Co.’s (LLY) Human Pharmaceuticals segment includes its oncology franchise, which includes Alimta, Cyramza, Erbitux, and Portrazza. The chart below shows revenues of LLY’s oncology products since 3Q15.
Alimta is a chemotherapy drug for the treatment of patients with advanced non-small cell lung cancer. Alimta’s sales totaled $532.9 million during 2Q17, a 12.0% decrease compared to $607.1 million for 2Q16. This included a 6.0% decrease in the US markets to $274.3 million and an ~18.0% decrease in international sales to $258.6 million during 2Q17. The drug’s sales decline was driven by competition in US markets and international markets.
Erbitux is a drug used in the treatment of metastatic colorectal cancer and head and neck cancer. Erbitux’s sales reached $159.1 million during 2Q17, a 12.0% decrease compared to $180.6 million in 2Q16. Its revenues declined due to competition from other products in the market.
The US markets reported a 15.0% increase to $133.0 million, and the international markets reported 10.0% revenue growth to $26.1 million during 2Q17. Erbitux competes with Roche’s Avastin and Amgen’s (AMGN) Vectibix.
Cyramza and Portrazza
The other drugs included in Eli Lilly’s oncology portfolio include Cyramza and Portrazza. Cyramza’s sales reached $186.3 million during 2Q17, a 27.0% increase compared to 2Q16. This increase followed the strong uptake in international markets. Portrazza’s sales totaled ~$2.3 million during 2Q17, a 43.0% decline compared to its 2Q16 revenues.
To divest company-specific risks, investors can consider the iShares US Healthcare ETF (IYH) which holds 2.4% of its total portfolio in Eli Lilly (LLY). IYH also holds 4.0% in Amgen (AMGN), 3.1% in Gilead Sciences (GILD), and 2.8% in Abbott Laboratories (ABT).